The top 5 cities around the world where even the rich soon won't be able to afford renting an apartment

New York topped a list of places where prime residential rents have risen.

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• Luxury rents rose 10.2% across 10 cities in the third quarter of 2022 from a year ago.
• Rents in New York, Singapore, and London round up the top three cities where rents have risen the fastest.
• Rents were driven by interest rate hikes and strong demand following the easing of pandemic restrictions.

Prime rents have been rising in major cities around the world as pandemic restrictions ease.

Housing rents have risen 10.2% across 10 major cities around the world in the third quarter of 2022.

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Following the lifting of pandemic restrictions and border controls, housing rents gained 10.2% in 10 major cities around the world in the third quarter of 2022 from a year ago. That's according to the latest Knight Frank Prime Global Rental Index report.

The Prime Global Rental Index, which is released on a quarterly basis, tracks luxury residential rents across ten cities using data from Knight Frank's global research network.

Out of the 10 cities tracked by the real estate consultancy, only two of them — Hong Kong and Auckland — registered declines in prime rental prices. Financial hub Hong Kong was affected by pandemic restrictions, while supply was strong in Auckland's luxury property segment, Knight Frank wrote in its report.

As for the seemingly relentless rise in other cities' rentals, there's some good news. The rate of growth is slowing: The 10.2% rent increase is lower than the 11.9% increase Knight Frank recorded in the second quarter of the year.

Keep reading for a look at the five major cities where prime — or luxury — rentals rose the fastest in the third quarter of 2022. Rounding out the top 10, but not included in our list, are Geneva, Monaco, Tokyo, Auckland, and Hong Kong.

1. New York rebounded from the pandemic, sending rents soaring.

New York rents have soared this year as the city rebounded from the COVID-19 pandemic.

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City: New York City, USA

Third quarter rental price change from a year ago: 31.3%

New York topped the ranking for the third straight quarter.

While the 31.3% increase is lower than its high of 39% in the second quarter, rentals were still elevated due to limited stock and continued demand, Kate Everett-Allen, the head of international residential research for Knight Frank, wrote in the report.

The number of properties available for rent across Manhattan fell 5% from a quarter ago and was down 65% from September 2020.

Rents have risen in New York City as the city rebounds from the pandemic, a development that has sent some renters fretting about expiring leases, Insider's Alcynna Lloyd reported in March 2022.

2. Singapore's rents have been driven by strong demand after borders reopened.

Rents in Singapore's private residential market are still expected to rise in 2023 — but at a slower pace.

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City: Singapore, Singapore

Third quarter rental price change from a year ago: 22.9%

"The opening of borders, along with the introduction of new visas to attract top talent from around the world, has generated an uptick in demand," Everett-Allen wrote of Singapore.

Demand has been fueled by immigration and by people who need interim housing while waiting for the construction of their homes to be completed after work was disrupted by the pandemic. Younger people — who traditionally live with families until they marry — are also seeking to rent amid a rise in remote work.

Residential property prices have also been on the rise in Singapore for all three quarters of this year, according to an official index of private residential prices.

To tame the market amid the uncertain global economic outlook, the Singapore government introduced new rules to limit those selling private residential property from buying a government subsidized flat for 15 months — further fuelling demand for rental property.

Rents in Singapore's private residential market are still expected to rise in 2023 — but at a slower pace of 13% to 16% in 2023 as compared to 26% to 29% in 2022 due to an increase in the number of homes coming on stream, real-estate firm Orange Tee wrote in a December 23 report.

3. London rents have risen nearly 19% amid a cost of living crisis.

The UK government has said it doesn't support rent control.

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City: London, UK

Third quarter rental price change from a year ago: 18.6%

The third quarter reflected a slowdown from the summer rental peak in London, with prices growing at 19% in the third quarter and 27% in the second quarter, per Knight Frank.

Surging rents have made life unaffordable for those in London, with some facing up to 60% rise in their rents, according to research undertaken by the Guardian.

The UK government has said it doesn't support rent control, as it would "discourage investment in the sector," according to a policy paper updated on August 2.

4. Toronto's rents are supported by robust demand as interest rates put off home-buying.

Rents in Toronto have been boosted by rising interest rates — which deter potential homebuyers from purchasing.

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City: Toronto, Canada

Third quarter rental price change from a year ago: 14.5%

Residential rents in Toronto, Canada rose 14.5% in the third quarter of 2022 from a year ago due to strong demand.

Rents in Toronto have been boosted by rising interest rates, which deter potential homebuyers from purchasing, Urbanation, a Canadian real-estate data analysis firm, wrote in an October report.

"We're getting close to that point where rents are just simply becoming unaffordable for renters," Shaun Hildebrand, the president of Urbanation, told CBC News on December 14.

5. Sydney rents are up nearly 9% from a year ago, but the pace of increase is slowing.

The practice of rental bidding is drawing government scrutiny in Sydney.

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City: Sydney, Australia

Third quarter rental price change from a year ago: 8.9%

Like Canada, residential rents in Sydney are driven by interest rate hikes and increased immigration after borders reopened, per Knight Frank.

Meanwhile, housing supply has not caught up with demand, leading to bidding rental bidding wars for property, News Corp-owned news.com.au reported on December 6.

The state of New South Wales, where Sydney is located, is investigating the practice of rental bidding and looking at reforming the system, according to the media outlet.

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